Epic Real Estate Investing - Rat Race Escape Regrets - Top 5 regrets from real estate investors | 1363

Episode Date: October 10, 2024

In this engaging podcast episode, we dive deep into the top five regrets of successful real estate investors, insights gleaned from a recent mastermind gathering that brought together over 200 high-level investors. Join us as we unpack these invaluable lessons, including the common regret of not starting their investment journey sooner. Many seasoned investors reflect on missed opportunities and the potential growth they could have experienced if they had taken action earlier. We also discuss the pitfalls of quitting their day jobs too early, a decision that often leads to financial strain and lost stability. Furthermore, we explore the challenges of navigating the real estate landscape without mentorship, emphasizing the importance of guidance from experienced professionals. Many investors candidly share their struggles with shiny object syndrome—distracted by too many investment strategies and failing to maintain focus on one solid plan. Additionally, we delve into the crucial mistake of selling properties too soon, highlighting the benefits of holding onto assets for long-term wealth accumulation. The episode also emphasizes the importance of creative financing strategies, such as seller financing, subject to agreements, and lease options, as effective ways to grow investment portfolios without needing substantial cash reserves. Through these discussions, we reinforce the essential values of patience, mentorship, and strategic focus. Tune in to learn how these insights can help you avoid common missteps and pave the way for lasting success in your real estate endeavors. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. Here's a little known fact. Some of the wealthiest real estate investors have massive regrets, the kinds that have set them back years. I was at a mastermind recently with about 200 high-level investors, and I asked about 50 of them. What do they wish they'd done differently to escape the rat race? Some answers were more surprising than others, but many of them were not what I expected at all, especially the fourth one. So I pulled together the top five answers just for you. Regret number one, not starting sooner.

Almost every single one of these investors said, I wish I had started sooner. As much as real estate is about creating passive income, it's also very much about compounding growth. The longer you're in the game, the bigger your gains. Think about this. Real estate appreciates, on average, 3 to 5% a year.

And when you buy real estate traditionally, with a 20% down payment and borrowing the rest, the return on appreciation is multiplied by a factor of 5, translating to growth of 15% to 25% per year. And that's just the appreciation. One investor told me if he had just gotten into real estate five years earlier, when he had originally considered the idea, his portfolio would be worth double what it is right now.

As Will Rogers said, don't wait to buy real estate, buy real estate, and wait. Regret number two, quitting the day job too soon. This one caught me off guard a little, but several of these investors said they wish they had held on to their day jobs a little bit longer. Their dream was to go full time in real estate. as quickly as possible. But the reality is that when you quit too soon,

you lose some major perks like health insurance, a consistent paycheck. And the big one, the banks love for W-2 income. You see, when you go self-employed, suddenly banks see you as high risk, and they cut you off until you prove yourself. And here's the conundrum for entrepreneurs. Because of the tax advantages,

the IRS gives business owners, the goal is to use those advantages to pay as little as possible by showing on paper that you made very little. It's all legal and above board. The tax code gives you permission to do this. In fact, they spell it out for you step by step. But the consequence of accepting the IRS's invitation to play this game is that the banks want to see on paper that you're making enough money as a business owner

in order to determine you lendable. Here's an example of how this played out for me in the real world. When I first moved to Las Vegas, I got denied for a mortgage when I tried to buy a home here. But my assistant whose salary I pay got approved to buy a home here. You see, the bank saw her W-2 salary as safe, but they deemed the guy who pays her W-2 salary unsafe. So while you're receiving W-2 income,

you want to maximize the benefits of leverage by accessing as many low-interest loans the banks will give you. One investor told me it felt like jumping out of an airplane without a parachute, scrambling to build it on the way down. So before you quit your day job, learn from their regrets and max out your bank loans before you quit. And make sure you've built a sufficient financial cushion too. When you think you've got enough, save some more, one guy said.

You'll need more than you think. Six months of reserves feels like a lot of money. And it is when you're receiving a regular paycheck, but it disappears pretty fast when you're not. Another guy said he wished he had at least gotten his rental income to match his salary before he quit. It would have made the transition from employee to entrepreneur infinitely easier for himself and his family. Most dream of quitting their day job, dieting full time into becoming their own boss and never looking back. That's what we all kind of want.

But here's the thing that most don't realize is, at first, you're also your own employee too. These investors had all made it. But they admitted they could have achieved their financial freedom sooner. and with less stress if they had avoided some of these key mistakes, like leaving their day jobs too soon. Regret number three, going it alone without mentorship. You can learn by doing, many have. I learned a ton that very way.

But working by trial and error, it costs me a lot of time and a lot of money, too. Every investor in that room said they wished they'd found a mentor sooner, or even a small support group of like-minded individuals of some type. This one guy said, trying to figure everything out, on your own is like trying to build a house without a blueprint. You might get a wall up, but trust me, that thing's coming down in the first storm. Another guy said, I spent years doing $100,000 deals when I could have easily been doing million dollar deals with the same effort if I had the right mentor, if only to shine a spotlight

on my self-imposed limiting beliefs. I have that regret as well. I mean, I was so afraid at the beginning of the extra zeros in the big deals. I mean, education and a good mentor aren't just about. avoiding mistakes, they're about growing faster and smarter. Here's the thing. If you're making these same mistakes right now, it could be the reason you're stuck in the grind longer than you need to be. These are the mistakes that could be preventing you from scaling, keeping you working harder instead of smarter, and costing you big, both financially and emotionally. This month,

I'm pulling together a small group of aspiring investors for a new apprentice program designed to help them start smart. It includes startup capital, a customized plan, lead generation, and access to cash buyers. If you'd like to join us, I posted the details for you at epicapprentice.com. Regret number four, chasing too many strategies. This one hit home for a lot of them, the shiny object syndrome. They got distracted by everything that seemed like the next big thing, flipping, wholesaling, multifamily, storage facilities, but here's the truth.

Those who became really successful did so by focusing on one thing and mastering it. I mean, even if it took them a minute to figure it. out what that one thing was for them, their real success didn't happen until they did. One investor said, if I just picked one strategy from the start, I'd have grown twice as fast and saved myself years of headaches. He likened it to trying to juggle 10 tennis balls all at once. You're eventually going to drop them all, he said. Instead, pick one strategy and get great at it. Get so good that you find it boring. Warren Buffett himself, he said, the best investing is boring investing. If you get bored of your strategy, that means you're doing it right. Before I get to

regret number five, there is one other regret that didn't quite make the top five, but I'll share with you as an honorable mention at the end. This one would have allowed them all to do many more deals without the need for more leads or additional capital. And they're kicking themselves hard for this one, but now you won't have to. But let's finish the top five first, and then I'll let you know what that one is. Regrant number five, selling too soon, not buying more. This was probably the most common regret selling properties too soon and not buying more when they had the chance. Flipping properties, it gave them quick cash, but that monthly rental income had they not sold would have set them free much sooner. And the appreciation from what they didn't sell would have made them

far wealthier. That's the long game they all can clearly see now in hindsight. Holding properties for their income is what keeps the lights on. It covers your mortgage, it gives you financial freedom, and creates your family legacy. One of the investors told me, cash flow is the oxygen of this business. Appreciation is the muscle. And he went on to explain, just like muscles grow over time and strengthen your body, appreciation builds your wealth gradually, adding value to your assets as they increase in worth. It's not something you rely on for day-to-day survival like oxygen, but over time, it is what allows you to lift heavier loads, accumulating more power, stability, and financial strength.

And he finished this by asking me this question. Would you had rather flipped 20 properties 20 years ago or bought and held 20 properties 20 years ago? I mean, he's got to be a listener of the podcast, right? Because I've asked people countless times the same exact question. And the answer is obvious for everybody. Yeah, but what if I don't have the money to buy 20 properties today? That's a regular follow-up question I hear. And that's why I wanted to include this honorable mention regret.

And it's a game changer, much more than people realize. A few of these investors said they'd wished they'd gotten into creative strategies like seller financing, subject to, or lease options earlier. These methods let you control properties without needing a ton of cash up front. One guy said, it's like playing chess when everyone else is playing checkers. So if you're trying to grow your portfolio but don't have stacks of cash lying around, Look into creative financing. It's going to open doors you didn't even know existed.

I'll see you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button

when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. You didn't know home for us, we got to dash low. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.